The following financial information is available on the Haverty Company:

Current per share market price $25.00

Most recent per share dividend $2.00

Expected long-term growth rate 4.0%

Haverty can issue new common stock to net the company $20 per share. Determine the cost of equity raised through selling new stock using the dividend growth model approach. (Compute answer to the nearest .1%).

Group of answer choices

14.4%

13%

13.4%

12.7%